Business News Asia
The strict COVID measures in China continue to show their effects on the economy and the population. In the last two months, Chinese authorities have repeatedly opted for lockdown measures in various cities. As a result, the service and manufacturing sectors are in a steady state of contraction.
The November Purchasing Managers’ Index for the services sector came in below 50 for the third consecutive month at 46.7, and a reading below that indicates a decline in services activity. The further decline came after the index was already below 50 in October at 48.0.
Already last week, Chinese authorities reported that the purchasing managers’ index for the manufacturing sector was below 50 for another month.
This increases the pressure on the government in Beijing to reconsider its zero-COVID strategy. Several cities have already seen unrest among the population, which increasingly rejects the lockdown measures.
Meanwhile, the Chinese yuan rose 0.80% as markets expect China to ease COVID measures soon and the country to open up again.